SAPPI LIMITED

Cash capital expenditure to expand operations by region was as follows:
2010 2009 2008 Rationale
(US$ million)
Sappi Fine Paper North America . . . . — — —
Sappi Fine Paper Europe ......... 2 1 12 Relates mainly to energy supply
project at Gratkorn mill and the
upgrade of a paper machine at
Ehingen mill.
Sappi Southern Africa—Saiccor ..... 5 18 236 Relating to the capacity increase
project at Saiccor.
Sappi Southern Africa—Other ...... 31 10 7 Relating mainly to process
improvement and plantation land
purchases in fiscal 2010.
Total ........................ 38 29 255
Capital expenditure to expand operations in fiscal 2010 consisted mainly of process improvement
and plantation land purchases in southern Africa.
Capital expenditure to expand operations in the fiscal years 2009 and 2008 primarily consisted of
investments to increase the capacity of and improve our Saiccor mill in South Africa. In August 2006, we
announced the expansion of the existing capacity at Saiccor mill, where Chemical Cellulose products
are produced. The previous production capacity of the mill was approximately 600,000 metric tonnes
per annum. The expansion has increased capacity to a maximum of 800,000 tonnes per annum. The
increased capacity came on-line in September 2008 and became fully operational in April 2009. The
investment at Sappi Fine Paper Europe during fiscal 2008 was part of a project for a new energy supply
at our Gratkorn mill. We are planning for capital expenditure to be approximately US$ 250 million in 2011.
Capital spending is expected to be funded primarily through internally generated funds. For further
details about our capital commitments, see note 25 to our Group Annual Financial Statements included
elsewhere in this Annual Report.
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